Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors. The company also offers customer support and engineering services, as well as manufactures masks. Its products are used in high performance computing, smartphone, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.

Taiwan Semiconductor Manufacturing Company Ltd.

Key Points
Taiwan Semiconductor Manufacturing (TSMC) has cornered the advanced AI chip market.
TSMC's new 2nm chips are expected to use between 25% to 30% less power than their 3nm counterparts.
Companies spending billions on AI infrastructure will be looking for power-efficient chips to save money.
Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC) is the world's largest semiconductor (chip) manufacturer, with a client list containing most of the world's top tech companies. It's been a great year for TSMC stock, up over 49% through Oct. 26.
Even with the stock up that much year to date, and up over 240% in the past five years, it's well positioned to keep climbing through the end of this decade.
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TSMC is one of the most vital companies in the artificial intelligence (AI) pipeline as the go-to manufacturer for advanced AI chips. If you look at all of the hardware in data centers (a critical piece to training AI), you can bet that TSMC manufactured a large portion of the chips.
In the coming years, AI infrastructure spending is expected to skyrocket, and TSMC will undoubtedly be a major beneficiary. Other semiconductor companies produce AI chips, but TSMC boasts industry-leading manufacturing capabilities, including the world's most technologically advanced foundries. And as data center power consumption continues to increase, the company is actively working to address this issue by pioneering energy-efficient chip architectures.
TSMC's next-generation process will be its 2nm (nanometer) chips, expected to be available in 2026. TSMC predicts these chips will use between 25% to 30% less power than its 3nm architecture at the same performance level. While this alone won't solve the AI industry's energy consumption problem, it will increase TSMC's competitive advantage, especially as hyperscalers look for more efficient ways to scale capacity while controlling energy costs.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
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Stefon Walters has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: Taiwan Semiconductor Manufacturing Will Skyrocket in the Next 5 Years. Here's 1 Reason Why.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the VanEck Semiconductor ETF (Symbol: SMH) where we have detected an approximate $245.8 million dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 98,241,874 to 98,941,874). Among the largest underlying components of SMH, in trading today Taiwan Semiconductor Manufacturing Co., Ltd. (Symbol: TSM) is up about 0.3%, ASML Holding NV (Symbol: ASML) is up about 1.9%, and Intel Corp (Symbol: INTC) is higher by about 5%. For a complete list of holdings, visit the SMH Holdings page » The chart below shows the one year price performance of SMH, versus its 200 day moving average:
Looking at the chart above, SMH's low point in its 52 week range is $170.11 per share, with $358.68 as the 52 week high point — that compares with a last trade of $358.35. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

VanEck Semiconductor ETF Experiences Big Inflow

How Investing Has Changed in the Last 5 Years

Key Points
Core AI funds hold platform companies building and deploying AI, while spillover funds target semiconductors, data centers, cybersecurity, and power infrastructure.
Expense ratios for thematic AI ETFs range from 0.35% to 0.75%, with passive index funds typically cheaper than actively managed alternatives.
Building exposure beyond core AI requires considering concentration risk in semiconductor funds and rate sensitivity in data center REITs.
Artificial intelligence (AI) creates investment opportunities across multiple layers, from the software platforms to the chips running them and the data centers housing the hardware. Exchange-traded funds (ETFs) offer diversified exposure to these segments without requiring individual stock selection, but the category spans everything from broad AI platform funds to narrow infrastructure plays in nuclear power and quantum computing.
Two approaches dominate AI ETF construction. Core funds hold the companies directly building and deploying AI – cloud providers, software platforms, and chip designers. Spillover funds target the picks-and-shovels businesses enabling AI deployment: semiconductor manufacturers, data center landlords, cybersecurity providers, and power infrastructure. The right mix depends on whether you want concentrated exposure to AI winners or broader participation in the infrastructure buildout.
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Here is a brief overview of the best ETFs covering this powerful theme.
Core AI ETFs
Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ) tracks the Indxx AI & Big Data index, providing broad global exposure across software, cloud, and mega-cap AI platforms. The passive fund carries a 0.68% expense ratio with approximately $6 billion in assets, offering diversified core exposure without overemphasizing any single AI category.
iShares Future AI & Tech ETF (NYSEMKT: ARTY) delivers similar core AI exposure from BlackRock at a lower 0.47% expense ratio. The passive fund tilts toward established technology names with fundamental screening, providing cost-conscious access to the same opportunity set as the Global X Artificial Intelligence & Technology ETF.
Roundhill Generative AI & Technology ETF (NYSEMKT: CHAT) takes an active management approach with concentrated positions in generative AI names. Launched in May 2023 with a 0.75% expense ratio, it offers options trading and suits investors wanting narrative-driven stock selection over index construction.
Semiconductor infrastructure
iShares Semiconductor ETF (NASDAQ: SOXX) and VanEck Semiconductor ETF (NASDAQ: SMH) both provide liquid exposure to chipmakers and equipment manufacturers. The iShares Semiconductor fund carries a 0.34% expense ratio while VanEck charges 0.35%.
The VanEck Semiconductor ETF concentrates heavily in its top 10 holdings – typically exceeding 70% of assets--with significant weights in Nvidia, TSMC, Broadcom, and ASML. The iShares Semiconductor ETF offers slightly broader diversification. Both are passive index funds capturing the profit engine of AI training and inference cycles.
Cybersecurity exposure
First Trust NASDAQ Cybersecurity ETF (NASDAQ: CIBR) applies rules-based screening to cyber names at a 0.59% expense ratio, while Amplify Cybersecurity ETF (NYSEMKT: HACK) tracks the NASDAQ ISE Cyber Security Select Index at a 0.60% expense ratio. Both are passive funds addressing the structural budget increases for AI-era attack surfaces and automated defense. The holdings overlap significantly but construction differences create modest performance divergence.
Data center infrastructure
Pacer Data & Infrastructure Real Estate ETF (NYSEMKT: SRVR) holds data center REITs and digital infrastructure operators through a rules-based Solactive index. Global X Data Center & Digital Infrastructure ETF (NASDAQ: DTCR) provides more direct data center and interconnect exposure at a 0.50% expense ratio. Both are passive funds targeting the landlord layer--racks, fiber, and powered shells. As REIT-focused funds, these ETFs carry rate sensitivity that can pressure valuations when yields rise even as fundamentals improve.
Nuclear and uranium
VanEck Uranium and Nuclear ETF (NYSEMKT: NLR) diversifies across nuclear operators, equipment manufacturers, and uranium exposure at a 0.56% expense ratio. Sprott Uranium Miners ETF (NYSEMKT: URNM), as the name implies, invests mainly in uranium miners, with a 0.75% expense ratio. Both are passive funds capturing the power infrastructure thesis.
Quantum computing
Defiance Quantum ETF (NASDAQ: QTUM) indexes quantum-adjacent computing and machine learning names at a 0.40% expense ratio. The passive fund captures exposure to companies working on quantum hardware, software, and enabling technologies as the field moves from research labs toward commercial applications. Quantum computing remains highly speculative with long development timelines, but recent advances in error correction and qubit stability suggest the technology may be approaching practical utility for specific AI and optimization problems.
The portfolio construction trade-off
One fund keeps it simple. Choose Global X Artificial Intelligence & Technology ETF for breadth or iShares Future AI & Tech ETF for lower fees. Pick the Roundhill Generative AI & Technology ETF if you prefer active concentration over indexing.
To own the full infrastructure stack supporting advanced compute, add satellites around a core holding: iShares Semiconductor ETF or VanEck Semiconductor ETF for chips, First Trust NASDAQ Cybersecurity ETF or Amplify Cybersecurity ETF for defense, Pacer Data & Infrastructure Real Estate ETF or Global X Data Center & Digital Infrastructure ETF for racks and interconnect, and VanEck Uranium and Nuclear Energy ETF or Sprott Uranium Miners ETF for power. If you want a small speculative sleeve, add Defiance Quantum ETF.
This structure captures AI's buildout across chips, racks, fiber, and kilowatts while the core holds the model builders and platforms.
Should you invest $1,000 in Global X Funds - Global X Artificial Intelligence & Technology ETF right now?
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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Global X Funds - Global X Artificial Intelligence & Technology ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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George Budwell has positions in BlackRock, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Nvidia, Taiwan Semiconductor Manufacturing, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends BlackRock and Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Best ETFs for Artificial Intelligence (AI) Exposure

Key Points
Taiwan Semiconductor is a neutral party in the AI race.
TSMC has expanded its global footprint.
The company is launching a new chip node to tackle energy consumption concerns.
The $3 trillion valuation club is a fairly exclusive group to be a part of. Currently, only four companies have ever breached this valuation level: Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). However, I think there could be a few more entrants into this exclusive club over the next few years, with one of them being Taiwan Semiconductor Manufacturing (NYSE: TSM).
Taiwan Semiconductor has a ways to go, as it's a $1.5 trillion company right now. So, for it to join the club by 2029, the stock would need to double in four years. If it can do that, Taiwan Semiconductor would easily outperform the market, making it a must-buy stock now. I think Taiwan Semiconductor is well positioned to accomplish this goal, and is my favorite way to invest in the artificial intelligence (AI) megatrend.
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Taiwan Semiconductor is a critical supplier for every AI infrastructure company
Taiwan Semiconductor is the world's leading contract chip manufacturer and has the most revenue of any chip factory by far. This places Taiwan Semiconductor in a neutral position in the AI race, as it's the one manufacturing the chips that every company needs. Regardless of whose computing units are being deployed -- be it Nvidia, AMD, or Broadcom -- they all get their chips from TSMC, making it a critical part of the AI supply chain.
Taiwan Semiconductor doesn't take this position lightly, and it's accomplishing several goals to improve the AI situation.
The first item TSMC is tackling is expanding its global footprint. One of the biggest concerns about Taiwan Semiconductor is its location, right off mainland China. Political fears about what China may do can drive stock sentiment, and a takeover would sink TSMC stock. However, this would also tank the rest of the market because every big tech company is dependent on chips from TSMC. To diversify its footprint, TSMC is building several chip fabrication sites around the world, with a $165 billion investment in the U.S. This diversification will help secure TSMC's global supply chain and ease the fears of a single point of failure.
A second task that TSMC has accomplished is tackling the energy crisis. It's no secret that AI data centers are energy hogs. Energy capacity could become a huge constraint in the U.S. in the near future, but TSMC's newest technology partially solves the problem. TSMC has 2nm (nanometer) chips entering volume production this quarter, and their improvements could change how much energy chips consume. Management claims that 2nm chips consume 25% to 30% less power than previous-generation 3nm chips when configured to run at the same speed. A massive energy consumption improvement like that could increase the amount of computing hardware that's run on a limited energy supply, allowing the AI hyperscalers to achieve their buildout plans. Those 2nm chips aren't cheap, and this new technology will cost the AI hyperscalers a fair bit of money, but those funds will help fuel Taiwan Semiconductor's rise to become a $3 trillion company by 2029.
Taiwan Semiconductor's management team has laid out a path to achieve this goal
At the start of 2025, TSMC's management team laid out a path to achieve a 20% compound annual growth rate (CAGR) over the next five years. A CAGR isn't consistent growth, as it measures revenue totals at the beginning and the end of the analysis. However, this year has been an anomaly that not even TSMC saw coming, so this projection may need to be altered to adjust for the growth that occurred this year. Still, I think growing at a 20% rate over the next few years is achievable due to the massive demand for AI chips.
Should TSMC increase its revenue at a 20% rate over the next four years, that would be enough to double its revenue. As long as TSMC maintains its margins and share count, that would result in the stock doubling if the business and stock stay correlated. I think the 20% growth rate is achievable due to massive AI data center buildouts, and makes TSMC a must-own stock due to its ability to crush the market.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Keithen Drury has positions in Alphabet, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: This Unstoppable AI Stock Will Join Nvidia, Microsoft, Apple, and Alphabet in the $3 Trillion Club by 2029

Key Points
Nvidia has created a wide moat by building a strong ecosystem around its chips.
ASML has a monopoly on the technology used to make advanced chips.
TSMC has become an invaluable parter to advanced chipmakers.
If you're looking for artificial intelligence (AI) stocks to hold for the next decade, you're going to want to find ones with leadership positions and strong moats. Let's look at three stocks that fit that bill.
Nvidia
When looking for market leaders with wide moats, it would be foolish not to start with Nvidia (NASDAQ: NVDA). The company captured an incredible 94% market share in its fiscal second quarter with its graphics processing units (GPUs), which are the primary chips being used to power AI infrastructure.
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Nvidia's moat comes not from having the most powerful chips, but from the ecosystem it has designed around them. This starts with its CUDA software platform, which it created as a way to let developers easily program its chips for tasks outside their original purpose. GPUs were actually developed to help speed up graphics rendering in video games, hence the name, but early on, Nvidia saw they had potential beyond this market.
While other markets were admittedly slow to develop for GPUs, the company smartly seeded CUDA into universities and research labs that were doing early work on AI. This led to most foundational AI code being written on CUDA for its chips, and most developers having been trained on CUDA. This dynamic not only helps its chips' performance, but also makes it extremely difficult to switch.
Nvidia didn't stop there, though. It created a proprietary interconnect system called NVLink that allows its chips to essentially act as a single unit, making them more powerful. Through its acquisition of Mellanox, meanwhile, it added important networking components, which now let it provide end-to-end solutions it calls AI factories. Networking has actually been a huge growth driver for the company, with its data center networking revenue nearly doubling last quarter.
With AI infrastructure spending expected to continue to rise over the next decade, Nvidia remains very well positioned to be a big winner.
ASML
Perhaps no stock has built as wide a moat in the tech space as ASML (NASDAQ: ASML). The company has a true monopoly on extreme ultraviolet lithography (EUV), which is the technology used to make advanced chips. Without EUV, there would be no Nvidia GPUs powering the AI revolution, or even smartphones.
Semiconductor equipment manufacturing can be a lumpy business quarter to quarter because ASML's machines are pricey and it only has a handful of customers for its most advanced machines. However, over the next 10 years, ASML is poised to see strong growth, both from the continued proliferation of advanced chips and the introduction of its newest technology, high numerical aperture (high-NA) EUV.
AI should continue to power chip growth over the next decade, but new applications such as robotaxis, robotics, and quantum computing could also add to this growth during this time. Meanwhile, to shrink node sizes even further, foundries will eventually need to turn to ASML's high-NA EUV platform, which costs nearly double its EUV machines. That makes ASML an intriguing stock to own over the next decade.
Taiwan Semiconductor Manufacturing
Foundry Taiwan Semiconductor Manufacturing (NYSE: TSM) is another company with a wide moat that looks poised to benefit from increasing chip demand. Today, most chipmakers don't actually manufacture their own chips. Not only is it very capital-intensive to build a fab, but it is also very technically challenging to produce advanced chips with high yields at scale.
TSMC's ability to shrink nodes (the amount of transistors that fit on a chip) while maintaining high yields has set it apart in the industry. With rivals struggling with yields, TSMC has become the go-to partner for chipmakers making advanced chips. The keyword is "partner," as companies like Nvidia and Apple rely on TSMC for both their chip roadmaps and to build out their future capacity needs. Its importance in the semiconductor ecosystem should not be underestimated, as it has given it strong pricing power and allowed it to expand its gross margin.
As chip demand continued to grow over the next decade, TSMC is one of the best stocks to own.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Artificial Intelligence Stocks to Buy and Hold Through 2035

Key Points
IonQ has developed advanced quantum computing technology, but the industry's long-term benefits are unproven.
Taiwan Semiconductor is the leading manufacturer of most AI processors.
Broadcom just scored a major deal with OpenAI, and its artificial intelligence sales are estimated to surge 650% over the next three years.
Quantum computing could transform many industries -- including pharmaceutical discovery, materials science, artificial intelligence (AI), and cybersecurity -- as the technology becomes more efficient. Some experts believe quantum computing will be the next big technological wave, which is why startups like IonQ are getting a lot of attention from investors right now.
The company's quantum computers use trapped ions to perform computations, which could potentially offer more accurate and scalable solutions than other quantum hardware. But many estimates still put the real-world benefits of quantum computing years down the road.
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As such, I think it's better for most investors to focus their attention on artificial intelligence opportunities right now, which still have many more years of potential growth. Here are two companies that will likely be better investments than IonQ stock in the coming years.
1. Taiwan Semiconductor
Taiwan Semiconductor (NYSE: TSM) is the manufacturing workhorse behind nearly all of the world's most advanced semiconductors, including those for AI data centers. If you look under the hood of nearly any artificial intelligence server, the processors manufactured in it are likely made by Taiwan Semiconductor, also called TSMC.
The company has spent decades developing the most advanced semiconductor manufacturing plants, essentially leaving rivals like Samsung and Intel in the dust. Making advanced chips is no easy feat, and having the equipment to do so takes billions of dollars in investments, which has given TSMC an early lead that's propelled it to about 90% of the advanced processor market.
Fortunately, sales and earnings have followed. In the company's most recent third quarter results, revenue rose by 30% to $33.1 billion, and earnings increased 39% to $2.92 per American depositary receipt (ADR). TSMC's CEO, C.C. Wei, highlighted the company's confidence in its AI opportunity on the Q3earnings call saying, "We are still very comfortable that the demand for leading edge semiconductor is real."
To top it all off, TSMC's stock is relatively well-priced compared to many of its AI peers. The company's shares have a price-to-earnings ratio of 31.5, which is nearly on par with the average P/E ratio of 31 for the S&P 500 index and far lower than the tech sector's 47 average.
2. Broadcom
Broadcom (NASDAQ: AVGO) is a leading designer of application-specific integrated circuits (ASICs) that are used in artificial intelligence and cloud computing systems, and it has become a leading choice for some AI companies' needs.
For example, ChatGPT creator OpenAI announced recently that it is partnering with Broadcom for 10 gigawatts' worth of AI accelerators by 2029. Broadcom will work with OpenAI to codevelop AI accelerators, and Broadcom will deploy AI server racks and networking systems.
The result could be billions of dollars in sales for the company, per WSJ, and it comes at a time when Broadcom's AI revenue is already booming. Management estimates that its artificial intelligence revenue will be $90 billion annually by 2027 -- a 650% increase from 2024.
AI is the better long-term play
IonQ's bet on quantum computing could eventually pay off, but right now it's a pretty big gamble. The company had just $21 million in sales in the recent quarter, compared to its $178 million net loss. With most real-world applications of quantum computing still years down the road, investors are essentially placing a bet that IonQ will benefit from quantum computing before the industry has even taken shape.
Instead, investors are likely better off putting their money toward two leading artificial intelligence companies -- Taiwan Semiconductor and Broadcom -- that are already growing sales and earnings significantly and have a foothold in the AI market. While no investment outcome is guaranteed, these two companies are already established leaders and should continue benefiting from their early AI moves for years to come.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Forget IonQ and Buy 2 Artificial Intelligence (AI) Stocks Right Now?

Key Points
Taiwan Semiconductor Manufacturing has a estimated 70% market share among chip foundries.
ASML is the only company making the extreme ultraviolet (EUV) lithography machines that foundries require.
For investors, artificial intelligence (AI) is the gift that keeps giving. Despite worries about the economy -- high interest rates, a sluggish job market, tariffs, high prices, and a government shutdown -- the stock market keeps rolling along, powered by AI stocks that have no intention of slowing down.
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AI infrastructure spending is expected to hit $490 billion next year, and to jump as high as $2.9 trillion through 2029. With that level of spending, it's no wonder why investors are continuing to pile into AI stocks.
But who is going to be the biggest winner in all this spending, as tech companies are scrambling to get a piece of the pie? In my view, it's the two companies with the biggest competitive moats -- Taiwan Semiconductor Manufacturing (NYSE: TSM) and ASML (NASDAQ: ASML).
Taiwan Semiconductor Manufacturing
There's a rush to make high-performing semiconductor chips. Among other uses, semiconductors power data centers that companies are using to manage AI-powered programs and large language models, plus developing new features. Nvidia, Advanced Micro Devices, Amazon, Apple, Qualcomm, Alphabet, and others are making these chips -- but they're all turning to Taiwan Semiconductor, or TSMC, to fabricate them.
"They are a world-class foundry and support customers of diverse needs. You can't overstate the magic that is TSMC," Nvidia CEO Jensen Huang gushed last month.
TSMC owns roughly 70% of the semiconductor foundry market, according to Statista. The company is in demand because it's one of the few that can make 3 nanometer (nm) chips, and it's working on mass producing 2nm chips this year. The smaller the transistor sizes, the more transistors TSMC can squeeze into a chip, making them exponentially more powerful. TSMC gets about 60% of its revenue from 3nm and 5nm chips.
Nvidia is the unquestioned leader in designing high-powered graphics processing units (GPUs) that are essential to top AI functions, but it will be under pressure in coming quarters as other top companies ramp up their own chipmaking efforts.
No matter who comes out on top in that fight, however, TSMC will be the fabricator of choice. That's why it's poised to be a big winner from the AI infrastructure boom.
ASML
Based in the Netherlands, ASML is the only company in the world making extreme ultraviolet (EUV) lithography machines, which are used to make small, advanced circuits on semiconductor chips. They work better than deep ultraviolet (DUV) machines because they reflect light using mirrors, rather than refracting it with lenses. That allows ASML's EUV machines to print smaller and finer -- and gives chipmakers the ability to make more powerful chips.
The company has a massive growth window in front of it. Revenues for 2024 were 28.3 billion euros ($32.85 billion), with gross margins of 51.3%, and management says it expects to have annual revenue between 44 billion euros and 60 billion euros ($51.08 billion to $69.65 billion) by 2030 and gross margins between 56% and 60%. If it achieves those numbers, ASML will have a compound annual growth rate (CAGR) of 13.2% at the top end.
For the third quarter of fiscal 2025, ASML posted revenue of 7.5 billion euros ($8.71 billion). And despite the expected dramatic drop in China net sales in 2026 because of export restrictions imposed by the Dutch government, the company expects to see positive global sales growth next year.
The bottom line
TSMC and ASML stocks are seemingly moving in tandem these days -- both are up 47% on the year, and both have a strong growth story.
AI companies are going to battle for the next several years to gain supremacy and market share as they seek to capitalize on the massive opportunity in artificial intelligence. But no matter which of these companies come out on top, they'll be turning TSMC to build the chips. And TSMC will need ASML's groundbreaking equipment to make that happen.
Both companies are perfectly situated to profit from the explosion in AI infrastructure spending, and that's why I see them as the true winners in the years to come.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
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Patrick Sanders has positions in Nvidia. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Alphabet, Amazon, Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Beyond Chips: AI Infrastructure Spending Is Projected to Hit $490 Billion -- Who Benefits Most?

You may have heard that semiconductor stocks such as Nvidia have ballooned in value over the last couple of years, and do you know why? The answer is actually quite simple. Nvidia develops chipsets known as graphics processing units (GPUs), which are a critical piece of infrastructure used in generative AI. Nvidia is widely regarded as one of AI's most influential players, and has amassed an estimated 88% command of the GPU market.
However, the GPU landscape includes far more opportunities than Nvidia. Below, I'm going to break down why I see chip manufacturing specialist Taiwan Semiconductor Manufacturing (NYSE: TSM) as the best opportunity in the chip space over the next decade.
Why the next 10 years could be massive for Taiwan Semiconductor
According to Precedence Research, the global GPU market is currently valued at $75.8 billion. Precedence forecasts that the GPU market will expand at a compound annual growth rate (CAGR) of 13.8% between 2024 and 2034 -- ultimately reaching a size of $1.4 trillion by early next decade.
Hold up! Why is an expanding GPU market more of a tailwind for Taiwan Semiconductor than Nvidia? Well, the answer is connected to rising competition. While Nvidia owns the GPU realm for now, the company faces direct competition from Advanced Micro Devices as well as peripheral competition from its own customers -- including Microsoft, Tesla, Alphabet, Amazon, and Meta Platforms.
It's entirely possible (and in my opinion, highly likely), that the chips introduced by big tech peers are not as robust as Nvidia's. However, the idea here is that as companies have more optionality to choose from, pricing is going to play a larger factor in future AI budgeting processes. As a result, Nvidia may not have a choice but to lower its prices, which should hinder the company's revenue and profit growth.
On the flip side, more variety in the GPU market should better serve Taiwan Semiconductor, which already works with many different chip designers. In a way, Taiwan Semiconductor represents an agnostic view of the chip market. It shouldn't really matter which company's chips are experiencing higher demand levels compared to peers. As long as GPUs remain an integral part of AI development, Taiwan Semiconductor should continue to see strong tailwinds in its manufacturing and fabrication operations.
Should you invest in Taiwan Semiconductor stock right now?
Right now, Taiwan Semiconductor trades at a price-to-earnings (P/E) multiple of 32.2. As seen in the chart below, the company's valuation has surged dramatically over the last 12 months and its P/E is hovering near 52-week highs.
I definitely think Taiwan Semiconductor's valuation has gotten a little frothy. While the stock isn't dirt cheap, I still think there's a case to be made that long-run upside isn't priced in yet.
The company's forward P/E multiple of 29 trails that of Nvidia and AMD by a considerable margin (both of which are over 40). To me, Taiwan Semiconductor's valuation trends suggest that investors are quite bullish on the company's near-term prospects, but have yet to really consider the long-term picture.
As I alluded to above, the GPU market is expected to grow considerably over the next decade. And during this time period, more products will be introduced to the market -- a potential road bump for Nvidia but a catalyst for Taiwan Semiconductor.
I see Taiwan Semiconductor as one of the most compelling opportunities in the broader chip space. Its specialty manufacturing business, combined with a diverse customer roster that could very well expand, should help spur sustained growth for years to come as the GPU market continues to evolve.
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A Once-in-a-Decade Investment Opportunity: Meet My Favorite Artificial Intelligence (AI) Semiconductor Stock (Hint: Not Nvidia)

ASML (NASDAQ: ASML) is known as a leader in the semiconductor industry. The company is the only maker of extreme ultraviolet (EUV) lithography machines are critical to the chipmaking process.
However, that competitive advantage hasn't helped the stock much this year. While peers like Taiwan Semiconductor Manufacturing have soared this year, ASML has gotten left behind in the artificial intelligence (AI) boom. Year to date through Dec. 16, the stock is down 5%, badly underperforming the S&P 500 and the broader chip sector.
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The chart below shows the comparison.
However, a pullback can often set up a buying opportunity. So is ASML a buy today? Let's take a look.
Where ASML stands now
The sell-off in ASML stock is understandable. The company disappointed investors in its third-quarter earnings report as it cut its guidance for 2025. That was due to weak demand in China following an earlier boom due to an order backlog. The company expects China revenue to normalize to about 20% of total revenue in 2025, down from close to 50% in 2024.
ASML's business is highly cyclical as the company makes very expensive machines and it only sells about 100 of them every quarter. That means a downturn or delay in the industry can have significant effects on its results.
In addition to the slowdown in China, the company is also being affected by export restrictions from the U.S. on sending advanced technology to China. It disappointed investors with weak booking results, as it only booked 2.6 billion euros' worth of new orders. That could be a warning about future demand.
Despite those headwinds, the company has returned to year-over-year growth, with revenue up 12% in Q3 to 7.47 billion euros. Earnings per share also moved up from 4.81 to 5.28 euros.
While ASML's core business may be beholden to the cyclical nature of the semiconductor industry, the company's EUV technology gives it a significant advantage. ASML is the world's only maker of EUV lithography machines, the next iteration of the deep ultraviolet (DUV) machines that handle most semiconductor production today.
However, EUV machines allow for the production of the advanced chips that are becoming more popular in the AI era, and that trend should only continue. Furthermore, the company is set to benefit from the boom in new semiconductor foundries, driven by AI, the CHIPS Act, and the need to geographically diversify away from Taiwan.
ASML now expects revenue of 30 billion to 35 billion euros in 2025 and 44 billion to 60 billion euros in 2030. The company continues to see significant opportunity in AI, noting that global semiconductor sales are expected to top $1 trillion by 2030. That implies 9% compound annual growth.
Meanwhile, the company is likely to remain the only maker of EUV machines. It has a technological lead over its competitors, and the research and development and manufacturing would cost billions and could be cost-prohibitive.
Is ASML a buy?
After disappointing investors by cutting its guidance for 2025, ASML seems to have relatively little downside at its current price point.
The stock trades at a price-to-earnings ratio of 39, which isn't cheap, but margins look set to expand next year based on its guidance. The company is forecasting a gross margin of 51% to 53% next year and 56% to 60% by 2030 as EUV machines represent more of its business.
Finally, ASML expects double-digit EUV lithography growth annually through 2030, which should make the stock a winner at the current valuation.
2024 has been a forgettable year for ASML, but the business' competitive advantages look durable. It should benefit from the growth of AI, expansion of foundries, and broader growth in the semiconductor industry. The stock looks like a smart buy at the current valuation.
Should you invest $1,000 in ASML right now?
Before you buy stock in ASML, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ASML wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $800,876!*
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Taiwan Semiconductor Manufacturing Company Ltd.

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